The depicted chart shows that the USD/CAD bulls failed to show enough momentum above 1.1200 during the last visit on March 20. The bears took an advantage and pushed the pair towards the price zone of 1.0910-1.0850 (50-61.8% Fibonacci levels on the daily chart).
The USD/CAD pair returned to test the previous support zone around 1.0900 (50% Fibonacci level) which previously provided a considerable support at retesting on February 19.
Temporary daily closure below 1.0920 took place. However, it didn't take long time to get a bullish engulfing daily candlestick as a bullish reaction on the next day pushed the pair again towards 1.1000.
On the other hand, on the 4H chart, the price zone of 1.0995-1.1045 (38.2% Fibonacci of the most recent bearish swing) was expected to provide a valid sell entry and it did.
The previously suggested bearish position taken at 1.0995 is now running in profits. Stop loss should be lowered to 1.0920 to secure some profits.
Other bearish positions can be taken at price zone of 1.0940-1.0950. It's the most recent resistance zone that comes to meet the pair. Bearish targets are to be located at 1.0865 initially.
The price level of 1.0960 remains the most prominent resistance level for the pair. Any breakout above 1.0960 will invalidate the bearish tendency for the pair temporarily.
The material has been provided by InstaForex Company - www.instaforex.com
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